Global Definitions Database

Obligor

Obligor means the asset owning property company (Company) or a Borrower.

Occupancy Rate

The ratio of rented or used space to the total amount of available space.

Offer price

The amount that an investor must pay (relative to NAV) if it wishes to subscribe to a vehicle.

Office Showroom

Single story (or mezzanine) with 10-16 foot ceilings with frontage treatment on one side and dock height loading or grade level roll-up doors on the other. Less than 15% office space.

An investment Vehicle with a variable and unlimited amount of capital which may be accepted and has an infinite life. Investors may purchase or redeem units or shares from the Vehicle as outlined in contractual agreements.

Operating Expense Risk

The risk of a negative impact associated with the continuous financial obligations incurred in the daily operation of the business.

Operating Expenses

Cash outlays necessary to operate and maintain a property, such as real estate taxes, property insurance, property management and maintenance expenses, utilities, and legal or accounting expenses.

Operating Model

A reporting model, supported by ASC 960 and GASB 25. (ASC 960 GASB 25 require certain investments held by tax-exempt investors, including defined benefit plans and endowments are to be reported at fair value. It generally employs a gross presentation.

Operating Partner

The partner that is responsible for operating the property and making daily decisions. Usually the partner with a minority investment in a joint-venture agreement.

Operating Property

Includes any asset which has been completed and/or placed into service for 12 months or is at least 60% leased, whichever occurs sooner

Operational control

Used to define organisational boundaries for financial and sustainability (and especially GHG emissions) reporting. Operational control relates to where the fund manager or one of its subsidiaries has the full authority to introduce its operating policies and ability to influence operational decisions within directly managed and controlled areas.

Operational Real Estate

An investment in a real estate asset structured so as to create a strong correlation between returns to the asset owner and the underlying operational performance of the operator or occupant. Operational real estate investments typically entail a different risk-return profile (operational, financial, or both) when compared to non-operational investments. Such investments may be accessed via a variety of structures, including, but not limited to, operational services agreements, joint venture arrangements or taking equity stakes in an operating business.

Operational results

NOI plus other net income

Operational Risk

The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.

Opportunistic (INREV Style)

A fund which typically uses high leverage, has a high exposure to development or other forms of active asset management, and will deliver returns primarily in the form of capital appreciation. The fund may invest in any markets or sectors, and may be highly focused on individual markets or property types.

Opportunistic (RS Style)

An Account of preponderantly noncore investments that is expected to derive most of its return from appreciation/ depreciation and/ or which is expected to and may exhibit significant volatility in returns. This volatility may be due to a variety of characteristics, such as exposure to development, significant leasing risk, high leverage, or a combination of moderate risk factors.

Opportunity Cost

The principle that the cost of a resource for one use is the value of the resource in its best alternative use.

Other net income

Non-recurring non-operating profit income, calculated by subtracting related operating expenses from the revenue of development projects and non-rental revenue.

Other/misc. vehicle costs

Small or infrequent vehicle level costs that are not assigned to another cost category but are classified as a group. These may include other administration costs, statutory costs, etc.

Outlet Center

Typically 50,000 to 400,000 square feet of manufacturer's outlet stores, with a primary trade area radius of 25 to 75 miles.

Outliers

Observations that have unusual values, that is, they differ markedly from a measure of central tendency.

Outsourced Chief Investment Officer (CIO)

In its broadest application, a form of discretionary investment consulting which comprises elements of policy formation, manager structure and selection, and performance monitoring through a fee relationship between an organization or pension plan or fund and a consultant or consultancy firm; also referred to as “implemented consulting”.

Outsourcing

A practice of a firm hiring third-party labor to replace services previously performed in-house.

Outstanding Capital Commitment

Outstanding capital commitment also known as Unfunded Commitment, uncalled capital or remaining capital commitment represents the total unexpired capital commitment less the total capital commitment drawn plus any unexpired Recallable Capital since inception, in accordance with the Vehicle Documentation.

Country-by-Country Guide

Due Diligence Questionnaire (DDQ)

Standard Data Delivery Sheet (SDDS)